Sprint 27 :: Product in Startup vs Existing Company

May 03, 2023

The main difference between a startup and an existing company is their stage of development and the challenges they face.

A startup is a newly established company that is in the early stages of development. Startups are typically small, agile, and have limited resources. They are focused on developing and launching a new product or service and are often looking to disrupt existing markets with innovative solutions. Startups are generally characterized by high uncertainty and risk, as they are exploring new business models, technologies, and customer segments.

In contrast, an existing company is an established business that has been operating for some time. Existing companies have a proven business model and a track record of success. They have established processes and procedures, and their operations are more stable and predictable than those of startups. Existing companies often have a larger team, more resources, and a larger customer base.

There are several key differences between being a Product Manager (PM) for a startup/new product and being a PM for an existing company with a strong well-used portfolio of products and services.

Scope of Responsibilities:

In a startup/new product, the Product Manager is usually responsible for the entire product development cycle from ideation to launch. This means they must wear many hats and have a broad skill set, including market research, customer development, prototyping, testing, and go-to-market strategy.

In contrast, in an existing company with a strong portfolio of products and services, the Product Manager's responsibilities are more focused on optimizing the current product portfolio. This includes identifying opportunities for growth, assessing product performance, gathering customer feedback, and working with cross-functional teams to improve the product.

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Speed and Agility:

Startups typically move quickly and are more agile, so Product Managers in startups need to be adaptable and flexible. They must work in a fast-paced environment, make quick decisions, and be comfortable with risk-taking.

In an established company, the pace is usually slower, and the product development process is more structured. The Product Manager must be able to work within the existing processes and systems and be comfortable with a longer development timeline.

Resource Allocation:

Startups often have limited resources, which means that Product Managers must be creative in how they allocate those resources to maximize the product's potential. They must be strategic in determining where to spend money, time, and effort.

In contrast, established companies typically have more resources to work with, and Product Managers can rely on established processes and systems to allocate resources.

Company Culture:

Startups often have a unique culture that fosters innovation, creativity, and risk-taking. The Product Manager must be able to fit into this culture and work with teams that are passionate about building something new.

In an established company, the culture is more structured and may be more risk-averse. The Product Manager must be able to navigate the corporate culture and work with teams that may be more resistant to change.

Overall, the role of the Product Manager varies depending on the type of company and the stage of the product development cycle. While both roles require strong communication skills, leadership, and an understanding of the market and customers, the PM for a startup/new product must be more adaptable and flexible, while the PM for an established company must be able to work within the existing structure and optimize the current product portfolio.